YUVA Ltd. is a textile manufacturing company based in Gujarat, with an annual turnover of ₹ 250 crore and net profit of ₹ 15 crore. Though the company was promoter owned, compliance with laws and regulations were given p

YUVA Ltd. is a textile manufacturing company based in Gujarat, with an annual turnover of ₹ 250 crore and net profit of ₹ 15 crore. Though the company was promoter owned, compliance with laws and regulations were given prime importance and the promoters themselves in their personal capacity supported various charitable causes. 'The Board of Directors also had independent directors and industry experts to guide the management. Meenu, a Company Secretary was recently appointed as compliance officer of the company and was asked to ensure compliance with the applicable laws and regulations in true letter and spirit. As a part of transitioning and succession, Grega, son of the Promoter director was appointed as Director of the Company. He bought a new perspective to the Board and emphasized that the company needs to adopt a structured approach to create genuine value for society and the communities surrounding its operations. In this context, Meenu mentioned that, Corporate Social Responsibility (CSR) has emerged as a vital aspect of modern corporate governance and ethical business conduct. It reflects the responsibility of organizations not just to generate profits, but also to contribute to the welfare of society and the protection of the environment. In India, CSR received a statutory framework through the Companies Act, 2013, which mandates that companies meeting specified financial thresholds to spend at least 2% of their average net profits of the last three years on CSR activities. The Board of Directors constituted a CSR committee, which after due consideration of the CSR activities allowed under the Act, identified three major focus areas: education, health and sanitation and environmental protection. These areas were selected because they were socially relevant, legally permissible and closely connected to the needs of the local community, where most of the Company's workforce resided. The Company allocated an annual CSR budget of ₹ 24 lakh, with ₹ 10 lakh earmarked for education initiatives, ₹ 8 lakh for health and sanitation and ₹ 6 lakh for environmental projects. This strategic allocation ensured both diversity and depth in CSR activities, allowing the Company to make a measurable difference across multiple sectors. By integrating CSR into its business philosophy, YUVA Ltd. showcased that social responsibility and profitability can go hand in hand. To achieve its CSR goals, YUVA Ltd. was evaluating to appoint an agency to support them in execution of CSR activities and collaborate with local authorities. The Board had a broad plan for each of the activities - in the education sector, the Company would distribute free books, uniforms, and learning materials to government school students, set up digital classrooms by donating computers and introduce scholarships for talented but financially weak students. In the health and sanitation sector, the Company would conduct quarterly health camps, distribute free medicines and build toilet facilities in five nearby villages under the Swachh Bharat Mission, thereby addressing both preventive healthcare and sanitation needs. In the environmental domain, a tree plantation drive would be launched, planting over 10,000 saplings. The Board viewed that these CSR initiatives will create significant social and economic impact. Incidentally, with these activities, employees and their extended families will also benefit. Environmental projects will not only promote ecological balance, but also demonstrate the Company's commitment to sustainability and clean energy. Internally, CSR will enhance employee morale, as workers will feel proud of their Company's contribution to their own communities. Externally, YUVA Ltd. will gain a positive reputation among investors, customers, and regulators. However, the management was of the view that, there will be certain challenges as well, like selecting reliable NGOs and ensuring effective utilization of funds. There could also be resistance from some villagers, who may be skeptical of the Company's intentions. Furthermore, measuring the long-term sustainability of projects such as health camps and scholarships required continuous monitoring and follow-up. However, these challenges would encourage the Company to adopt stronger monitoring mechanisms, build deeper partnerships with stakeholders and design CSR projects that had both immediate impact and long-term benefits. In the background of above facts, answer the following: As a Consultant of the Company, outline the general recognition and measurement criteria for CSR.